Shipping and mailing solutions provider Pitney Bowes (NYSE: PBI) reported Q2 CY2026 results exceeding the market’s revenue expectations, but sales fell by 2.3% year on year to $451.5 million. On the other hand, the company’s full-year revenue guidance of $1.83 billion at the midpoint came in 0.7% below analysts’ estimates. Its non-GAAP profit of $0.43 per share was 32.3% above analysts’ consensus estimates.
Is now the time to buy Pitney Bowes? Find out by accessing our full research report, it’s free.
Pitney Bowes (PBI) Q2 CY2026 Highlights:
- Revenue: $451.5 million vs analyst estimates of $443.5 million (2.3% year-on-year decline, 1.8% beat)
- Adjusted EPS: $0.43 vs analyst estimates of $0.33 (32.3% beat)
- Adjusted EBITDA: $139.7 million vs analyst estimates of $124.8 million (31% margin, 12% beat)
- The company reconfirmed its revenue guidance for the full year of $1.83 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $1.63 at the midpoint
- Operating Margin: 25.1%, up from 15.5% in the same quarter last year
- Free Cash Flow Margin: 32.8%, up from 21.2% in the same quarter last year
- Market Capitalization: $2.41 billion
Company Overview
With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE: PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $1.87 billion in revenue over the past 12 months, Pitney Bowes is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.
As you can see below, Pitney Bowes struggled to generate demand over the last five years. Its sales dropped by 13% annually, a tough starting point for our analysis.
Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Pitney Bowes’s annualized revenue declines of 4.4% over the last two years suggest its demand continued shrinking. 
This quarter, Pitney Bowes’s revenue fell by 2.3% year on year to $451.5 million but beat Wall Street’s estimates by 1.8%.
Looking ahead, sell-side analysts expect revenue to decline by 1.8% over the next 12 months. Although this projection is better than its two-year trend, it’s hard to get excited about a company that is struggling with demand.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
Adjusted Operating Margin
Pitney Bowes was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 9.9% was weak for a business services business.
On the plus side, Pitney Bowes’s adjusted operating margin rose by 19.6 percentage points over the last five years.
In Q2, Pitney Bowes generated an adjusted operating margin profit margin of 25.1%, up 9.7 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Pitney Bowes’s EPS grew at 33.6% compounded annual growth rate over the last five years, higher than its 13% annualized revenue declines. This tells us management adapted its cost structure in response to a challenging demand environment.
We can take a deeper look into Pitney Bowes’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Pitney Bowes’s adjusted operating margin expanded by 19.6 percentage points over the last five years. On top of that, its share count shrank by 22.3%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Pitney Bowes, its two-year annual EPS growth of 329% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.
In Q2, Pitney Bowes reported adjusted EPS of $0.43, up from $0.27 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Pitney Bowes’s full-year EPS to grow 2.2% from $1.66 to $1.70.
Key Takeaways from Pitney Bowes’s Q2 Results
It was good to see Pitney Bowes beat analysts’ EPS expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance slightly missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 2.4% to $18.11 immediately after reporting.
Sure, Pitney Bowes had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
